What is the CBAM Carbon Border Adjustment Mechanism?

CBAM (Carbon Border Adjustment Mechanism) is an EU mechanism that equalizes CO₂ emission costs between goods produced in the Union and those imported from outside the EU. Importers report embedded emissions and, starting in 2026, purchase certificates linked to the EUA price.

When does CBAM 2026 take effect in the European Union?

The transitional period lasts from October 1, 2023 to December 31, 2025. From January 1, 2026, importers must purchase and surrender CBAM certificates for embedded emissions in imported goods.

How to calculate the cost of CBAM certificates?

In short: cost = [(embedded emissions – benchmark emissions) × CBAM factor – (EU-recognized origin carbon price × emissions subject to deduction)] × CBAM certificate price (average EUA price from the previous week).

Which goods are covered by CBAM?

Initially: steel and iron, aluminum, cement, fertilizers, hydrogen, and electricity. The list may be expanded by a decision of the European Commission.

What is the de minimis exemption in CBAM?

Importers bringing up to 50 tons of CBAM-covered goods per year are exempt from reporting and purchasing certificates, provided this threshold is not exceeded.

How will CBAM affect energy prices in Poland and Europe?

Directly, CBAM applies to importers of electricity from outside the EU. In countries importing electricity, certificate costs may be passed onto the market, leading to higher energy prices.

What data is required for the CBAM report?

An SEE (Standard Electronic Exchange) sheet from the producer is needed: direct and indirect emissions, energy consumption, emission factors, installation and operator details, and country of production.

What is the benefit of a deduction in CBAM?

If a local carbon fee recognized by the EU has been paid in the country of production, the importer can reduce the number of CBAM certificates required by the equivalent of that fee (with proper documentation).

What are the penalties for non-compliance with CBAM?

Failure to report or insufficient certificates will result in financial penalties imposed by national authorities, calculated based on the missing number of certificates and linked to the EUA price.

Negative Energy Prices: The Transformation Paradox (2025)

Negative electricity prices are no longer a rarity. In the first 10 months of 2025, Germany, the Netherlands, and Spain experienced over 500 hours of negative prices. Poland is no exception – the Polish Power Exchange (TGE) is increasingly seeing price drops of up to -500 PLN/MWh. Is this a system error? No. It's a side effect of the energy transition. In this article, we show why this happens, what the consequences are – and what recipients can do to not only protect themselves, but also benefit.

Negative prices in real time. Their creation is led by m.in.:

Surplus production from renewable energy sources when demand is low (e.g. on weekends, holidays, sunny afternoons).
Lack of flexibility in the system – limited storage capacity and insufficient flexibility of recipients.
Network bottlenecks– energy cannot be sent to where it is needed.
Rigid regulations and contracts– CfD mechanisms and long-term PPAs can encourage production despite negative prices.

Effect: the market is sending the wrong investment signal sand the system loses balance between production and demand.

TGE data show that Poland is entering a phase of greater energy price volatility.
In the years :

ENTSO-E data for Poland indicate that the share of solar (PV) and wind energy is increasing over the same period, while demand (especially on weekends) is decreasing. This is a classic recipe for negative prices.

The graphics below show how very high production of renewable energy sources (PV) collides with low demand for power in the power system at 12 noon and the lowest energy price in Poland in 2025 occurs - PLN 500/MWh

Europe's largest renewable energy market is now facing a problem predicted a decade ago. The PV and wind-based system is generating excessive surpluses, and the lack of energy storage is causing significant price declines.

California has learned its lesson.

The effect? - the system can "swallow" surplus energy at noon and release it in the evening, stabilizing the market. The graphics below show,that the overproduction of renewable energy could be stored and 'shifted' to the evening hours, which on the one hand would reduce evening peak prices and there would be a good chance of avoiding negative prices at noon.

As the share of renewable energy in the mix increases, episodes of negative prices will become more frequent.
This doesn't mean the market is broken though - it'sa signal that it is time to adapt to new conditions.
For Europe and Poland, it will be crucial to introduce three pillars of balance:

Negative prices are therefore not an error, but a warning signal that the network is not keeping up with the pace of transformation.

For companies across Europe – not just in Poland – three strategies are key:

Countries that will learn manage demand, will gain a competitive advantage.
In a world where energy can be free or negative,Those who can store it and use it at the right time benefit the most.

Negative prices are not a system error – they are a bill for the pace of energy transformation. <br>Europe is already realizing that without investment in storage and demand flexibility, each additional gigawatt of renewable energy may paradoxically reduce system stability.

For Poland and other countries in the region, this is a moment of strategic decision: whether the transformation will be chaotic or controlled. Companies considering corporate power purchase agreements (cPPAs) must pay attention to the relevant provisions in their contracts.

Acta, non verba – actions, not words.
A green transformation without flexibility and storage will not be sustainable.

1.What are negative energy prices?

2. What causes negative energy prices?

3. Is this a negative phenomenon?

4. When do negative energy prices most often occur?

5. What investments reduce the risk of exposure to negative prices?

6. Do negative prices mean that renewable energy is bad for the market?

Negative energy prices: the paradox of transformation and the challenge for businesses

When is current negative?

Why are energy prices falling below zero?

Consequences of negative energy prices

For producers

For recipients

For the system

Poland 2023–2025: data from the TGE market

Lessons from California – Energy Storage and Market Stabilization

Are negative energy prices the new normal?

Applications for energy consumers (in Poland and Europe)

Negative energy costs – psummary

FAQ: Negative energy prices

Negative Energy Prices: The Transformation Paradox (2025)

CBAM 2026: How will the EU carbon border change energy prices?

ETS: How does it affect energy prices in Poland and the EU?